Bond Connect is a new mutual market access scheme that allows investors from the Chinese mainland and overseas to trade in each other's bond markets through connection between the related financial infrastructure institutions in the Chinese mainland and Hong Kong.
In December, the global investors continued to buy the Chinese bonds, with a net purchase of 14 billion yuan. 93 percent of transactions were concentrated on negotiable certificates of deposit (NCDs), government financial bonds and government bonds. These bonds saw the period of repayment be within one year, 1-3 years and 7-10 years.
Data of the CFETS shows that as of the end of December 2018, a total of 503 overseas entities entered the inter-bank bond market through the program.
By region, majority of the overseas institutions participating in the Bond Connect program are in Hong Kong, with the proportion standing at about 41 percent.